Older student-loan borrowers are at risk of losing a chunk of their Social Security. There's a new bill to prevent that.
Democratic senators have introduced legislation to prevent the government from garnishing Social Security payments to cover defaulted student loans. The bill aims to protect seniors and disabled borrowers from losing essential income amid record-high student loan defaults.
Why it matters
The bill addresses the growing financial vulnerability of older Americans and the broader crisis of student loan debt in the U.S.
Sen. Bernie Sanders is pushing to prevent Social Security garnishment for older student-loan borrowers. Nathan Posner/Anadolu via Getty Images Sen. Bernie Sanders is introducing legislation to stop Social Security garnishment for defaulted student-loan borrowers. The Education Department has paused garnishments and has not specified when the pause will lift. Defaults are at a record high, and more borrowers are expected to fall behind due to the elimination of SAVE. Student-loan borrowers could lose their Social Security checks if they fall behind on their loan payments. Democratic lawmakers want to put an end to that practice. On Monday, Sens. Bernie Sanders, Elizabeth Warren, and Ed Markey introduced a bill to prevent older student-loan borrowers and borrowers with disabilities from facing Social Security garnishment if they default on their payments.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in